Gold and silver hit multiyear highs but show signs of topping as positioning and stock-market ties raise reversal risks.
Gold and silver prices surged 3.4% and 12.98% over the past six months, reaching multiyear highs alongside copper and broader metals. However, a senior strategist warns the rally may be losing momentum as correlations with the S&P 500 strengthen.
Early in 2026, metals moved independently of equities, reflecting safe-haven demand. By late spring, their performance converged with the S&P 500, raising concerns of a potential reversal. Copper and the all-metals subindex are up 12% and 7% year-to-date but well off recent peaks.
Positioning in copper futures also signals risk, with managed-money net longs at one-third of open interest. Such crowded trades often unwind sharply when sentiment shifts, increasing volatility spillover into equities.